Effective September 22, 2025, India implemented a major GST rate overhaul, replacing the four-tier structure with a simplified three-tier system of 5%, 18%, and 40%. This reform aims to reduce the tax burden on essential goods and services (5% slab), standardize rates for most products (18% standard rate), and impose higher taxes on luxury/sin goods (40% slab).
Starting September 22, 2025, GST in India will be simplified to primarily two rates: 5% and 18%, with a special 40% rate on luxury and sin goods like tobacco and high-end vehicles. Many essentials, including certain medicines and foods, are now zero-rated, while several items see reduced rates.
GST Rate and Slab Changes in September 2025
GST rate cuts on 200 items happened from 22nd September 2025. 90% of items in the current 28% slab are moved to the 18% slab. Almost 99% of the items in the 12% slab are moved to the 5% slab.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
2022, Works contract services provided to Central and State Government, or Local Authorities, which were earlier eligible for concessional rate of 12% GST,would attract GST at the rate of 18% in view of amendment carried out in notification No. 11/2017- Central Tax (Rate) vide notification No.
Here's what you need to know about the relevant threshold and how it affects your business or enterprise. The GST threshold for 2025 is $75,000 in annual GST turnover for most businesses. If your GST turnover exceeds this amount in any rolling 12-month period, you must register for GST within 21 days.
What are the new GST rate slabs for 2025 in India? The slabs under the 2025 Next-Gen GST Reforms are 0% (exemption), 5% and 18%. A new 40% GST slab has been introduced for luxury goods like premium cars and bikes, and sin goods like cigarettes and tobacco.
Groceries, gas, and rent are getting more expensive, and many Canadians are searching for relief. Good news is, Starting July 2025, the HST/GST credit has increase by 2.7%, helping low- and modest-income households stretch their budgets.
New GST Rate of 9% in 2024
Come 1 Jan 2024, the GST rate will be raised from 8% to 9%, as part of the two-step GST rate change announced by the Minister for Finance in Budget 2022. The first step from 7% to 8% had taken place earlier on 1 Jan 2023.
The GST Amnesty Scheme under Section 128A grants total waiver of pending interest and penalty amount if the tax dispute amount is paid by an eligible taxpayer on or before March 31, 2025.
What was the decision in 56th GST council meeting? The long-discussed proposal for a two-tier GST structure has now been approved (and implemented starting from 22nd September 2025): 5% GST: Applicable to most essential and everyday goods and services. 18% GST: For higher-value products and services.
Total Net GST revenue for October 2025 stands at ₹1,69,002 crore, which is 0.6% higher(monthly growth) and 7.1% higher (yearly growth) than the corresponding period last year at ₹1,68,054 crore.
GST Updates 2025: Key Highlights of 56th GST Council Meeting. One of the major GST council decisions was the creation of a two-tier GST rate structure that featured 5% for essential goods and 18% for most other goods and services. The GST Council also abolished 12% and 28% slabs.
As of 2025, the GST rate in Singapore is 9% for all taxable goods and services (except for nil-rated). With the GST rate change, as laid out by the Inland Revenue Authority of Singapore (IRAS), it has become even more important to be at par with the recent amendments.
The GST Council on September 3, 2025 has announced rationalisation of GST slab structure by abolishing 12% and 28% tax slabs and introducing 40% tax rate primarily for luxury and sin goods. With this rationalisation in rates, key goods that would benefit include several FMCG and consumer durable products.
How to Avoid GST on Overseas Purchases Legally
New GST Rate Structure 2025: 5%, 18%, and 40% Explained. The Goods and Services Tax (GST) in India has undergone its biggest overhaul since its 2017 launch.
In order to qualify for this, you have to have worked in 2023 and had an income below $150,000. You also qualify if you received Employment Insurance, paid EI premiums or made CPP contributions. You should receive this via cheque or direct deposit by April 2025.
https://iccimmigration.ca/new-gst-payment-to-be-issued-across-canada-on-january-5-2026-eligibility-amounts-what-newcomers-need-to-know/ 💰 NEW GST PAYMENT ALERT – JANUARY 5, 2026! The CRA is issuing the first GST/HST credit of 2026, with eligible Canadians receiving up to $533 annually—and a 2% increase coming in July 📈
The rollout of new GST 2.0 rates from September 22, 2025, marks a turning point in India's tax journey. By simplifying the system into 5%, 18%, and 40% slabs, the government has addressed one of the biggest criticisms of the original GST—complexity.
Effective October 1st, 2025, a new set of rules for GST return filing will come into effect. This marks the first filing cycle under the GST 2.0 reforms, aimed at improving transparency, control, and accuracy in Input Tax Credit (ITC) management through the Invoice Management System (IMS).
India's Goods and Services Tax (GST) system has entered a new era with the rollout of GST 2.0, effective from September 22, 2025. The Council has simplified the structure into a 5% slab for essentials, 18% for standard goods, and 40% for luxury/sin items, replacing the earlier complex categories.
You must register for GST if: your business has a GST turnover of $75,000 or more. your non-profit organisation has a GST turnover of $150,000 or more. you provide taxi or limousine travel (including ride-sourcing services like Uber or DiDi) regardless of your GST turnover.